side, buy put spreads. >> that does it for us on "options action" this friday we'll see you back here next friday at 5:30 p.m. eastern time meantime, do not go anywhere, because "mad money with jim cramer" start right now. have a great weekend. my mission is simple, to make you money and the level the playing field for all investors. mad money starts now. new view welcome to mad money. call me or tweet me.

anybody that thought we could get a debt ceiling deal at any time before the very last minute must be believing in the tooth fairy. maybe they thought that they would welcome the cowboy fans with open arms. >> yes, that is exactly how the republicans walked out of the meeting with democrats that are eager to nail down a deal. the nasdaq losing points to 4%. everything is driven by ai. that is exactly what it did. we are too far away from the debts healing deadline to get a deal done. the president is on the other side of the world in japan. only when leaders feel like there is a true gun to the

head. they only got a deal when they thought the rating agencies would remove the debt. it is just too easy to knock this highly elevated market down in the dumps like it did today. next week, next week is going to be no different. we will come in with nothing done over the weekend and the clock is ticking. the only thing that will actually matter on monday is the quarter after the close. during the covid lockdown we were zooming all over the place like crazy. when things opened up, we all just opened up microsoft teams instead. ways for people to sell things. at this point, it does not matter. it makes them very hard to beat. tuesday is more torturous retail.

this time it is wells which will have more results than the home depot in volatility. i was worried about dick's sporting goods being too high. it has not been a strong category this ring. i should've been more worried. maybe that moves this company from a big downturn. they will have a really weak quarter on tuesday. that negative retail story is a disappointment and it sends retailer stock lower than it is right now. i figure there will be one more strong quarter. it will be short as much as 7

million homes. it will exacerbate the showed edge which drives prices up, not down. that is exactly what they want. then there is palo alto networks. the best cyber security company. we talk about it a lot at the club meeting. they have been incredibly reliable. there are only a few that are negative on the story. there is a big short position being built up against palo alto. in the morning we get to hear from kohl's and nvidia. i'm worried about kohl's. it could be a very hard quarter, the hardest that we have seen on department stores. they can have an amazing quarter. focused on industrial end markets. the demand has never stopped.

for the quarterly reporting, they will eventually take over the way that we look at the cloud. you have to be very patient. it is a legitimate connection. the software company is so hot i would tell you to buy it ahead of the order. one of the junior gross stars on the great list of 10 that i will be following all the time. it has taken the cosmetic show by storm and i expect there will be one more blowout. then there is my beloved nvidia. many people think that this is the most overhyped stock in the market right now. in the end, stocks are valued on the future earnings prospects. they are on the fast part of artificial intelligence. that is why it is so hard to

value. not in this ai obsessed market. like apple, own it, do not trade it. is there a dog more hated than best buy right now? it is a placeholder. we will buy a lot of it. anyway, we keep hearing that no one is buying anything for their home because it is already been bought. basically people are trying to -- their home. i am glad i'm not the ceo, it is such a hard job right now. they will not go down if the quarter is miserable. that is as good as it gets. this has been a stock of light. they have a will suite of new

medical devices. some people are saying it is because of covid. people are finally getting the nonurgent surgeries that they had to delay during the pandemic. consider this situation. ralph lauren. they had a horrible quarter last time. i think that -- i would buy this one if it was 100 ahead of where it reports. there is been a lot of chatter about a tougher macroenvironment. it is a retailer that should be fought if it breaks down. why, because of the loyal rewards programs. one of the best reward programs in the country. download the app, you will not believe how strong it is. key products that are actually

needed for ai data. you hardly hear about it. i will give you something that is given the hatred for retail. think about costco. the company is undercutting the price which is unusual. once they take it it does not go away. it is sticky. by costco now, not a couple orders from now. on friday, there had better be a debt deal. we are too close to the drop dead day. they have to sell oil, what are they going to do? this was not an issue that snuck up on us. it is well known. bringing down the psyche of the whole country. if we do get a debt ceiling

deal, it will bring sideline cash back into the market even if it is over five percent as of now. first we have to go through this will process this agonizing process. brace yourself and get this, keep your fingers crossed. steve in new hampshire, steve. >> how are you? >> i'm doing real well, i cannot wait to get started next week already. >> i have been enjoying you for decades. >> now we are dating ourselves. what's going on? >> i have been invested in devon for a while now, it has been sleepy. is it going to pick up after we get into memorial day? >> we bought pioneer today. i have to tell you that pioneer has a bigger yield and better growth prospects. trey in texas.

trey. >> i was heating up leftover shepherds pie last night when it dawned on me. i don't want this to begin again. let me tell you, there is no flavor like olive garden breadsticks. >> unlimited salad bowl. my daughter and i would go there on saturdays. i think you are so right. what a great place. the line is the only problem. anyway, if we do get a debt ceiling deal, it will move stocks higher even though interest rates are high to begin with. we have to get there. we held a monthly meeting for subscribers and we had so many questions from members and we decided to answer some more of them tonight. do not miss my take on your

most asked about holding. i am revealing what you should do. and why you should own it. a finger on the poles where the global food supply is and i am learning more from the company. stay with kramer. >> do not miss a second of mad money. have a question? tweet kramer. send him an email. or give us a call. miss something? miss something? had todo madwo money.cnbc.com.a. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when

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we discussed our current holdings and discuss member questions. that is one of my favorite things to do. we always have more questions than time to take them. we pick from the leftover ones here tonight. they are so good. if you are not a member of the club and you would like to be part of it. i hope you will be a part of it. open your phone and scan this qr code behind me to become a member. i hope you do. or go to cnbc.com/investing club. it is so much fun. let's start with club member drew who says, there are lots of love commentary about -- in

regards to the annual letter. would your club consider it and consider holding? >> we have thought about this endlessly. we give you that is a reason that is a little confusing to most people. i do not know what they own and what they buy. even though they are the best single investors in the world, i do not like situations -- he is not a grade as an investor. i am not going to buy. even if it is done by the world's greatest investors. next up is todd, i have been suffering for years and i have done 50%. the dividends will pay me to wait. do i take my losses or will this ever come back? >> they are submerged in the company from japan.

the balance sheet is not that good. at this point, i think the price has come down enough that you should hold it and hope that they do have some kind of combination. they do have good businesses but they do not have great balance sheets. given the ai companies, goldman sachs has an upset. the answer is absolutely. if it weren't for the fact that there are other problems that goldman. i would tell you to buy gold and on the spec that this could occur. morgan stanley is able to swing into action if they have to. in the end you have a better yield and better management. james gordon is retiring but not right now, i like the

advisory business more than i like the mna business. especially with the fcc that is determined to kill every single deal. >> i read the call, they did have some problems. yes, this is it. at this very moment it is a better holding than deer. if you want the part that i like which is the construction business, just by the stock of caterpillar which the club owns. it will be up over the next five years. what is your opinion on jetblue airways. no mergers in that group. there isn't going to be any. the country has decided and the government has decided no more combinations of airlines. the only airline that i really write night now is delta.

next up is monica. i want to think jim for making me and saving me a lot of money. what about mcdonald? do we i thought about buying this for the club. i love wendy's. i think that yum is great too. i added wings stop to my gross stock list. there is a lot to like in the industry. next barry asks which is builders first source. what a great question. the answer to this is the one area of strength. it was good even for home depot. incredible. we do not know why. it is unnerving to me that i do not know why flooring is the strongest part. refurbishment raises the right

of your house. it is increasing in value when you put money in it. it is like you are capitalizing your house. next up is tonya, new court has a buyback stock plan. you have said that you will not chase newport. should i stop chasing? this was a great question. we had a great head. then we sold too soon. that is a suckers play. you never say that i sold too soon when i made money. do not worry about the winners, worry about the losers. here i am getting enticed to go into newport. it is getting real real good. now, remember, you can join the club on cnbc.com/investing

club. i will see so many of you when i go out to redondo beach tomorrow. most importantly, join the club. we will be back after the break. coming up, does the stock of carol schwab deserve your money? keep it here. ♪ ♪

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i like getting paid correctly. ahhh! icy hot pro starts working instantly. with two max-strength pain relievers, so you can rise from pain like a pro. icy hot pro. when the banking crisis first hit, financials got obliterated. there were a lot of babies that got thrown out. take charles schwab.

plummeting $76-$52. at the time i told you this was horrible. schwab might have its own internal back room. at the end of the day they are a huge form. they are in a totally different line of business. remember one of these things is not like the other. a lot of investors have to play that game. we have heard only good news from these guys. to make it increasingly obvious. the stock has not recovered. it is still stuck down here. this is crazy. i know those words are strong when it comes to any financial. they can come back to haunt you. for months now, there've been a

bunch of incredibly encouraging data point. whatever they tell us, it does not matter. reality is very good for charles schwab. what am i talking about? let me walk you through the scores since the last time i walked you through this in march. a perfect business update from the company. why cash is moving around. explaining that businesswise extremely robust. i have known him forever. they even saw a $53 billion in. that is the opposite of a bank run. they recorded a robust corridor with in-line revenue. 10% revenue growth.

not much to be said for the troubled institution. 11% decline but a couple weeks before, they were worried about a bank run. they saw a 28% increase in the total money market funds order after quarter. they have benefited from the turmoil in the banking industry. all right, there is only one big negative here. the company did pause in the buyback program. i wish they had not. it is understandable. in response to the quarter, the stock jumped 12%. i thought that the pain was over. that is it, it is out of the

woods. that turned out to be a high watermark. without any updates from the company they were dragged down by the regional bank sector. no meaningful company specific news. like i have been telling you for months, they are a brokers firm. it is not a bank. on may 5th, another positive update. the trajectory highlighted the new business opportunity. the pace of business load which is a has work late outflow month due to tax payment inflow. deposit and withdraws continued to slow. the monthly activity report for april. total client assets are up 5% year to year from the previous month. that is very encouraging.

and saw all seriousness, they were doing fine. very little credit risk unaffected by recent macros. schwab will eventually get a higher price once these shares actually stabilize. when i recognize them in march, they had come all the way down from $4.88 to $4.07 at the time. even though they were awarded a earnings in april they keep cutting numbers. now it is only $3.30 per share. however, even without much lower of a number, it will come in above that. schwab is trading 3.7 times this estimate. more important, when you get

into the middle of the year don't worry about that. right now the endless look is $4.13 per share next year. that is their estimate. they will stop trading at 13 times next year's numbers. it was one of the cheapest and the whole book. for growth. let's not forget the lower earnings that make it easier for the company to surprise the upside when it reports. are they taking a meaningful hit from the many bank prices? does it deserve to be trading as the at risk regional bank. absolutely not. every single one. it does not credit any of them. not at all. that is where we were trading in late march. to me, that is absurd. wall street will figure it out

too. no one can make a stand on any bank unless it is silicon valley or first republic. the bottom line, as we move further away from the acute period of the bank crisis, charles schwab stock will be trading on its own merit again. likely back to the precrisis level. if you are patient and take with it, it will be backup to nice gains here. it can take some time. wall street is in denial about what is really going on at this very strong brokerage firm. let's go to j in colorado. j. how are you? i'm good, what's happening? i have a question about capital one for you? i bought capital one inmate of 2022. it was down 30% year-over-year.

i kept buying. i kept buying until it hit $89 and then i stopped. what is your stance on that?it is funny, sometimes in life , things happen. it makes things easy for you. can anyone analyze it on one bucket? it is the best in the world. you know what that says to me? let's go to reagan in pennsylvania. elijah. my bad, my bad. what's happening? what is your take on new holdings. a company out there in brazil that sounded like it had really good information. that country has had a big run, i know.

i am saying right here right now, it is time to coaching, i do not like the political environment there. i want to go to jeff in new york. jeff. hello, miss d÷■er cramer. just down the road from the pga tour in rochester. this thing is glued. i have to get into golf. what's going on? you should come up here with your wife. my wife likes to golf. how can i make money for you? i've been in the doghouse for a while now. i expect to do better in the second half of this year. new competition from the apple pay, should i move out and take my money away from paypal? you know what, you mentioned

something and you answered the whole question. you are right as rain about apple. because of that, you could get a bounce. i think you have to go. apple pay is so good that you no longer even need a wallet. if you are willing to be patient and stick with schwab, you could wrap up some good stuff. so much more mad money, that is the heavy machinery space act company that is doing a lot better than here. maybe take a listen. sorry to burst your bubble, all of this fear of a bubble is unwarranted? i'm telling you where i come down. this edition of the lightning

round, stay with cramer.

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we are seeing the same dilemma in all kinds of company stocks. they have been awful. it is going to get a lot worse going forward. one of the largest makers of farm equipment. they reported higher than expected sales. with a four year forecast. it is the right thing just

under 3%. they have given up all of those gains and they are 15% from a post quarter hi. when it is that low, it means that it is making many investors nervous. do we need to worry about a looming agricultural slowdown. this is the chairman and ceo of ag for. great to close out the week for you, jim. came in far better in the top and bottom line. you had improved margins . maybe what i am thinking is that there are people that believe this is the peak of the cycle.you are absolutely right. the stock and use ratio has

been coming down for six years in a row. one of the best indicators of how much demand will be out there. the input costs for the farmers are actually cutting down. these can be locked in for next year. this year we are set, we have strong demand into next year. look at the price of fertilizer. that is a good indicator of what will happen. is that a true tell? that is one input that the farmer has. it is significantly down from where it has been the last year. farmers will located lower and lower prices this year. it is their profitability for 2024. that is what i want to look at.

there was a notable dichotomy for your company between sales of large and small equipment. in europe the orders were huge. do i have to worry about small? for dear it was bad. it is not on. i think this dichotomy is okay, correct? it is okay. i would say that the two markets do behave differently. a lot of folks like you and i looked out our window, i will do that project i was thinking about. large ag is driven by the amount of grain in the world. that one is really going red hot. south america, north america, all around the world. they do run a different cycle. i want ask you about south america. a lot of us think it is that

they cannot be doing anything that is good for business. what is happening there?there is a tremendous amount of demand and profitability for the south american economy. they get to grow 2.5 crops per year. right behind it comes the planter. that is different from anywhere else in the world. they have a alignment advantage. they have a cost advantage. right now, they are growing a lot of profitable brain there and the market is demanding it. the profitability, i have been in this business for almost 30 years. it is higher that i'm ever seen it. they are doing great business there. the decision by the prc to switch to a brazil rather than america for a lot of drops. to some extent, that was the

case . if a buyer buys from one part of the world, it will shift where the grain will go. in a given week, it will have an impact. it is somewhat transient. grain flows to wherever the price will bear. it is an advantage for south america. it is a advantage for grow bull agate demand we lost 13% to the uk. when i look back, a lot of our problems really began in ukraine. has anything adjusted positively? is it a real problem for the whole world what is happening?it is a real problem. it is coupled with a lotto alignment issues. drought without relief throughout most of europe. it is here to stay.

even if it were to end tomorrow, there is a long- standing degradation in that area to grow crops. it will be with the market for quite some time. my last question, i was talking to my colleague and saying that precision agriculture is here to stay. enough, enough. what does that really mean? machines can do a lot, they can self drive. why precision agriculture does matter. this is at the heart of our company. we are moving to a technology company. one of the centers that we put on the planter measures 750,000 measurements per minute with those measurements and the onboard computer capacity when you put it in autopilot mold can adjust the amount that you put on per acre. to make sure that it is only

using the right amount. it can make sure there is moisture for good germination. many more things. that is just one. we can identify the difference between a weed and the plant. it can put the chemical to the weed. we are doing that throughout all of the machines on the crop cycle. it is where our focus is. we are adding a tremendous amount of value to farmers. you are well ahead of everybody else. technology does matter and thank you for a special dividend to the shareholders which is pure joy. i wish more companies did what you are doing. thank you so much. great to see you. this is a company that we have like 10 we stick with it. we will be right back after the break.coming up, what is on your mind, give us a call.

the lightning round is storming next. ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ partnering to unlock new ideas, to create new legacies, to transform a company, industry, economy, generation. because grit and vision working in lockstep puts you on the path to your full potential. old school grit. new world ideas. morgan stanley. ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ )

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so you can rise from pain like a pro. icy hot pro. mom: hey! cheap flight alert! daughter: hawaii! can we go? dad: maybe. i'll put a request in monday. sfx: shattering glass. theme song: unnecessary action hero! dad: was that necessary? unnecessary action hero: no. neither is missing this deal. with paycom, vacation is yours to manage. unnecessary action hero: not to mention benefits, scheduling, payroll. it's hr in the palm of your hand. dad: wow. unnecessary action hero: ask your employer about paycom. and make the unnecessary, unnecessary. dad: approved! - double check that. eh, pretty good! (whistles) yeek. not cryin', are ya? let's tighten that. (fabric ripping) ooh. - wait, wh- wh- what was that? - huh? what, that? no, don't worry about that. here we go. - asking the right question can greatly impact your future. - are, are you qualified to do this? - what? - especially when it comes to your finances. - yeehaw! - do you have a question? - are you a certified financial planner™? - yes. i'm a cfp® professional. - cfp® professionals are committed

to acting in your best interest. that's why it's gotta be a cfp®. find your cfp® professional at letsmakeaplan.org. it is time. the lightning round is over. robert in california, robertshow are you doing? i'm doing well, how are you? october last year i was

wondering if you feel the same? i have double down on my negativity. i want to go right now to fernando. how are you doing? doing well, what's up with you? good to hear. ti pharmaceuticals is up 100% over the year. i do not understand that stock. i will have to take a pass for now. it is astounding me what is going on with that company. i'm sorry.ot know. jeff in new jersey. i know you do not like companies that don't make any money. they have got religion and they are doing the pivot. the ceo of jacobs told me to look out. i am positive that as long as

he keeps it up, there will not be any curse words. sometimes i don't use them. garage.thank you for taking my call. it is my pleasure, what is up? i did some investmentsi like that. i love closed utilities. that is a good call. carl in california. caller.can you tell me what is going on with the 2.3 4.5% yielding down 20% that is hf sinclair.

everyone thinks that the numbers will come down a great deal. i do not think at this point has nearly as much risk. it has one down so much i do not like the stock. let's go to elliott in massachusetts. thank you for taking my call. i am a teacher and i want to teach my students the value of saving and investing. i wonder if you think i should tell my students about veba systems. expensive stock but great company. they have the space to excel. i will say yes. it is a good stock for younger people not older people. it is more risky than those that i recommend on the show. gregory.i was feeling a little left out in the cold. a rivalry between me and the entire south bay of los

angeles.yes. yes, 2:00, i cannot wait to get there. what's up? this is a natural gas company. as a club member i have a small position in the company. i thought about buying more in this breakout. it is range resources. range is right to buy here. see you tomorrow. that is the lightning round. the lightning round is sponsored by td ameritrade. coming up, cramer is not buying the b word for today's tech, find out next.

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people keep throwing around the term bubble. nevermind that they have a whole housing development of pain last year. i know what a genuine bubble looks like. what do i mean by that? they are made by genuine homespun alchemy. these companies tend to have no earnings with little cash and imaginary products. it sounds different for anyone

looking at bogus stocks. it happened during the.com bubble towards the engineer 1999 it happened again in 2021 where many companies went public and they checked off every bubble box that i just mentioned. fraudulent electric vehicle companies. they could not fly and rockets that could not take off and the stock is now too small to talk about. when we think about what 2021 was, i'm not talking about my cameo in iron man. a military contractor got out of the defense business. i bought a company that was hemorrhaging money and they had money and a game plan.

during the period when i took it publicly we had 30 other ipos and only 30 of them made it through. i gave a presentation where i talk like an ophthalmologist. because in 1999 we had a whole cohort of internet stocks based off of page views, earnings, sales, cash flow, no no no. it was a complete joke. the tech firms that we are blasting as part of the bubble are some of the best well cup companies on earth. you have to go back to the robin baron era where he thought the entire oil market in the country. nvidia has super expensive stock. i will tell you where i stand

with this stock. when i first discovered nvidia i was the head of all the north america where they were known for gaming chips. i rolled it out as too expensive. they now have 100 times earnings. a year later, i realized that they were selling it 16 times the current earnings then. the numbers statement were much greater. who is to say that will not happen again? when we look at nvidia and apple, the global stock looks like everyone has enough stock in the balance sheet to put most companies to shame. surely because of political dysfunction that the collect tons of interest in the process. by the way, we like to take

something off the table. if you want to say that these have gotten ahead of themselves that is fine. if you think it is a bubble, save that label for 2021. they are much i am brian sullivan. tonight, the whipsaw, dealing with negotiations now back on. over to you for latebreaking details from d.c. menasha is picking blue origin to build the next moon trip. elon musk could be out in the cold. today, a push making it a big week for big tec